Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. share market reached record highs in the quarter, with the S&P 500 Index rising 5.89%. The market showed wider gains, unlike the previous quarter, with the S&P 500 Equal Weight Index beating the cap-weighted S&P 500 Index by 3.71%. The composite returned 6.47% gross of fees (6.39% net of fees) in the third quarter underperforming the 9.43% return of the Russell 1000 Value Index and outperforming the 5.89% return of the S&P 500 Index. Security selection led the composite to underperform in the quarter relative to the Russell 1000 Value Index, while allocation had a slight negative impact. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Capital Value Equity Strategy highlighted stocks like Blackstone Inc. (NYSE:BX), in the third quarter 2024 investor letter. Blackstone Inc. (NYSE:BX) is one of the largest alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The one-month return of Blackstone Inc. (NYSE:BX) was -0.98%, and its shares gained 46.39% of their value over the last 52 weeks. On October 11, 2024, Blackstone Inc. (NYSE:BX) stock closed at $153.04 per share with a market capitalization of $186.923 billion.
Aristotle Capital Value Equity Strategy stated the following regarding Blackstone Inc. (NYSE:BX) in its Q3 2024 investor letter:
“Blackstone Inc. (NYSE:BX), one of the world’s largest alternative asset managers, was a leading contributor for the period. Blackstone reported nearly $40 billion in inflows and deployed $34 billion during the quarter, its highest investment activity in two years. With over $180 billion in dry powder, the company possesses significant purchasing power to invest in attractive opportunities such as its recent $24 billion acquisition of data center platform AirTrunk, its largest investment in the Asia/Pacific region. Moreover, Blackstone continues to make progress in penetrating the retail and private wealth channels, as the company raised $7.5 billion overall during the quarter, with assets raised in perpetual vehicles over the first half of 2024 eclipsing full-year totals in 2023. BCRED (a private credit vehicle), BREIT (a private real estate vehicle) and the newly launched BXPE (a private equity vehicle) have all seen encouraging signs with new inflows. Despite BREIT’s challenges last year, all redemption requests since February have been fulfilled at 100%, and requests in June were down 85% from the peak of 2023. As the overall industry fundamentals improve, we believe Blackstone’s first-mover and distribution advantages in its retail initiatives and its overall reputation as a best-in-class operator will continue to create shareholder value.”
A portfolio manager pointing to a digital graph of emerging market assets.
Blackstone Inc. (NYSE:BX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held Blackstone Inc. (NYSE:BX) at the end of the second quarter which was 55 in the previous quarter. While we acknowledge the potential of Blackstone Inc. (NYSE:BX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Blackstone Inc. (NYSE:BX) and shared the list of stocks with the highest consensus return on equity (ROE) according to Goldman Sachs. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.